- Always try to get a target price to aim for. It is fair to ask Customer for a target price. Make sure the price is received for the same product’s quantity and specifications.
- Before lowering the price of a product, it is important to justify the provided price and explain to Customer why the price level is at this point. It can be some external factors (shortages of API, energy shortage, limited number of production facilities for production at the same time with a high demand, etc.)
- Justification of the price also can be connected to AdvaCare as being an American brand, with the combination of quality, price, and marketing support.
Check with Sales Manager if decreasing profit margin is acceptable:
- Can Customer increase ordering quantities?
- Can we combine the order with another Customer for the same product?
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Check with Purchasing Dept.:
- Is there another Vendor with a lower price?
- Will increasing of ordering quantities lower the price?
- Will changing product packaging/specification lower the price?
- Can India Vendors be considered for this product?
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